May 14, 2010
By Angela Monaghan
The sell-off of the single currency accelerated on Friday, falling to as low as $1.2433 at one point, its lowest level since November 2008. Analysts at Commerzbank warned “a further fall towards parity cannot be excluded”.
World stock markets were down across the board as the confidence shot administered by a $1 trillion eurozone rescue package gave way to deep concerns over the situation in Greece, Portugal and Spain. All three countries have been forced to agree tough austerity measures to address the debt crisis which began in Greece but has since spread.
It has raised fears that growth in the eurozone will be restricted as the policies are put in place, further destabilising the euro.